Reputational risks are caused by many intended, and unintended events, for example: a cyberattack on a retailer’s credit card data, manipulating markets or making trades based on insider data, employing under-aged workers overseas for a “US-based” company, or accidently serving contaminated or expired food at a restaurant.

Whether the event is intended or unintended, the responsibility ultimately belongs to the company’s CEO and their management team. Why, because it directly impacts revenue and the company’s brand.

One of the major reputational risks today is systems interruptions and Cybersecurity. Any interruption to services - whether it be from a cyber attack, system-wide outage, human error, or security breach, is a business disruption that goes all the way up to the C-suite executives down to their clients, and can cost extremely valuable time and money to repair…not to mention the damage to your reputation.

Some things are out of your control and customers will understand that; for example, a storm knocking out power and shutting down your systems. They won’t, however, be as understanding if you weren’t proactive in safeguarding your company. So how to do you stay ahead of the problems?

If a third-party is hosting your data or is the hub of your operation you still need to remain in control. When their systems go down or are breached, your clients are coming to you with their complaints - because ultimately you are responsible. One way to be proactive with a third-party vendor is to have them comply with your own internal requirements.

Make sure you have a tested disaster/incident recovery plan in place. Disaster/incident recovery planning is a huge undertaking and touches every part of your organization, but having a plan and testing it will help you face any challenges down the road.

When something goes wrong you will need the entire company on board, not just the IT team who’s going to work around the clock to remedy the situation. Your top management teams, PR professionals, customer support, and even your marketing staff need to be involved, and know what the company response is, and how it’s being communicated.

Be proactive. Invest in data analytics that will enable you to analyze real- time data, such as pattern detection and recognition. Keep on top of social media using text analysis that will pinpoint conversations about your company. Social media combined with big data analysis will help you get ahead of the crisis and lessen the impact. This combination could be the most important and impactful decision you make, better than business liability insurance!

Learn from mistakes. Hopefully you are not the target of a company-wide disruption, be it human error or cyber attack, but chances are some company, somewhere around the world is being hit right now. Most won’t make the front page news of the Wall Street Journal, but you need to be ready to respond to incidents whether they are the result by cyber security attacks, third-party partner action or employees’ mistakes. Loss of reputation is beyond repair if not properly and systematically addressed.

Make sure that you know what your business risks are and that you are up to date with managing them all the time. Managing your business risks are not a one-time event. Each component that contributes to the risks must be monitored in real time. There are multiple tools and technologies that will facilitate managing and monitoring both your business and operational risks.

In the end it’s your company name, your reputation, and your responsibility to ensure the integrity of your brand.

April 22, 2016

Ransomware cyber attacks are growing and it can happen to anyone, anywhere. The attacks can be on a personal computer or even take down an entire network at a hospital. Organizations posing as law enforcement, government agencies, banks, and credit card companies are using deceptive links and websites to install malware - which essentially holds all of your files ransom, encrypts and demands payment to restore them.

But this doesn’t have to happen to you. There are several very simple steps which can help safeguard you from attacks.

Anti-virus software - Every personal computer should have it. There are a lot commercial anti-virus software programs to choose from, and they are worth the investment. Once you have the software, make sure that it’s installed correctly with the most up-to-date version, that it’s always on, and that you have it set to alert you when there are updates to install.

If your computer does become infected and you don’t have an anti-virus program set up, you can install one to “clean” your computer, but you may need additional assistance to help restore your hard drive.

Anti-virus programs are equally, if not more important, for businesses – but because most businesses have software on their computers which prohibit users from downloading software it’s up to the company’s IT department to keep their users protected. Most business updates need to be done via a server to all their user’s computers and devices; this includes not only anti-virus software, but operating systems and third-party applications. Businesses should conduct security training for their users, as to what is and isn’t acceptable on company devices, including mobile ones. In addition, there should be computer usage, security, and security awareness policies in place.

Corporate IT departments need to routinely conduct risk assessments, as well as alert users of any new viruses or bogus and fraudulent emails that may be circulating.

Back up Everything, Frequently – It is essential that you are backing up your files on a regular basis. If you are hit with ransomware or any other type of virus and your computer and its files can’t be saved, you will have your backups to do a system restore or rebuild.

Consider The Cloud – Rather than keeping all of your files on a hard drive or server, consider moving bigger more important files to the cloud. Cloud storage will allow you to access your files remotely without the risk of them being infected by ransomware if your computer or server is hit.

Keep Everything Up-To-Date – It’s not just your anti-virus software that you need to keep updated. You should also keep your operating system and all of your programs updated with the latest versions. By keeping them updated you’ll be on top of any issues that may arise, as well as alerted to security warnings from the software manufacturers.

Avoid Suspicious Sites and Emails – If you are unsure of the sender, or an email comes with an attachment you aren’t expecting, delete it. Opening a suspicious email or clicking on a suspicious site could launch ransomware onto your computer.

It’s important that you make sure that all of your family, co-workers and employees know the risks of ransomware and how to protect themselves and that they should never pay the ransom. Not only is it feeding into criminal activity, but there is no guarantee you’ll get the encryption code promised to get full functionality back to your computer.